Girding for upheaval
Thai Oil's chief executive has prepped the firm for imminent challenges ahead, while seeking to ensure the needs of the workforce remain at the fore
Bandhit Thamprajamchit, Chief Executive Officer and President of Thai Oil Public Company Limited
Bandhit Thamprajamchit, chief executive and president of Thai Oil Plc, is aware of fresh challenges for the company moving forward as Thailand shifts towards cleaner energy.
He is helping Thai Oil transform its business strategy in response to growing demand for sustainable energy, embracing innovation and expansion to ensure the company's long-term success.
Thaioil has evolved into a modern complex refinery with a capacity of 275,000 barrels per day, recognized as one of the most efficient refineries in the Asia Pacific region.
As it faces external challenges such as the energy transition, the drive towards sustainability, advances in artificial intelligence technology and a demographic shift, Thai Oil is embracing change in order to turn potential crises into opportunities for growth.
Mr Bandhit revealed the company's readiness to address these external challenges through its vision of "Empowering Human Life through Sustainable Energy and Chemicals".
Thai Oil has set an aspiration portfolio target for 2030, which involves reducing the proportion its petroleum business and high-value petroleum products contribute to its overall portfolion from 70% at present to just 45%. By 2030 the remaing 55% of the overall portfolio would be made up of the company's petrochemical business and high-value petrochemical products (30%), new S-Curve business (20%), and power business (5%).
3V STRATEGY
Thai Oil is is aiming to drive the organisation by using three 'V's to achieve its goals and be consistent with its overall vision, Mr Bandhit says.
The first 'V' refers to value maxi- misation, which involves integration of the existing business value chain, alongside the pursuit of investment opportunities in the downstream petrochemical sector while extending into high-value products to enhance the company's competitive capabilities.
This is supported by key business platforms, including the Clean Fuel Project (CFP), and through its investment in PT Chandra Asri Petrochemical Tbk, Indonesia's largest integrated petrochemical company.
The second 'V' refers to value enhancement. This strategy aims to expand the company's overseas markets in order to support various Thai Oil Group products, Mr Bandhit points out.
In addition to its main sales base in Thailand, Thai Oil will expand into target countries that have high rates of economic and population growth, such as Vietnam, Indonesia and, most recently, India.
The third 'V' refers to value diversification. Under this strategy, the company will expand its investment into new S-curve businesses that relate to the latest mega-trends, he said.
Among the new businesses targeted are: the chemical business, for inhibiting and eliminating harmful germs; surfactants used in industry and cleaning products (disinfectants and surfactants); and bio-businesses and new energy businesses, including investment and business creation through corporate venture capital.
3C APPROACH
Thai Oil's business transformation also includes efforts to address its environmental impact through the strategy of three 'C's.
Mr Bandhit said the company is focusing on achieving its sustainability goals, with an interim target of reducing greenhouse gas emissions by 15% by 2035 as well as achieving carbon neutrality by 2050 and a net-zero target by 2060.
The first 'C' refers to cut down emission. Reducing greenhouse gas emissions from Thai Oil's current production processes is a priority that the company is trying to implement to as great a degree as possible by studying and creating net-zero pathways.
The second 'C' involves compensating for residual emissions, which means the company aims to compensate for the remaining quantity of greenhouse gases, Mr Bandhit explains.
The third 'C' refers to controlling future emissions. The company wants to control the amount of greenhouse gases by adjusting its portfolio to include a significant proportion of investment in alternative low-carbon businesses and products, aligning with its V strategy. Mr Bandhit said Thai Oil is heading towards a great future by transforming its business to align with global megatrends.
Thai Oil's chief executive has prepared all aspects of the organisation and communicated the messaging required to support these changes, placing an emphasis on looking after the needs of employees so they can produce quality work and experience a good quality of life as he believes in the message behind the slogan "Your Value, Our Priority", which will ensure Thai Oil grows steadily and sustainably towards becoming a 100-year-old organisation.
